Platts opens consultation on ETBE FOB AR assessments

S&P Global Platts is opening a formal consultation on its ETBE FOB AR and ETBE spread to MTBE assessments, particularly around how best to reflect the sustainability criteria relevant to minimum greenhouse gas savings of ETBE traded in the European market.

Assessments currently reflect material with sustainability documentation showing a minimum GHG saving of 50% as per prevailing European Union Renewable Energy Directive requirements.

While biofuels consumed in the EU are currently required to have minimum GHG savings of 50% when compared with the fossil fuel comparator, Platts understands there is increasing demand for the ETBE feedstock – ethanol – with higher GHG savings in different parts of Europe due to several other factors, such as tighter emissions targets, blend walls for blending bio components into gasoline and the use of GHG-based mandates in a number of EU member states.

Platts is therefore seeking feedback on the typical minimum level of GHG savings and on sustainability certification systems for ETBE traded in Europe. Platts current ETBE specifications require the seller to provide proof of sustainability documentation obtained in the framework of voluntary schemes approved by the European Commission with the buyer holding a right to audit the sustainability documentation for verification purposes.

Platts also invites feedback on standard industry conversion rates from $/mt to $/barrel for ETBE and MTBE.

Throughout this consultation, Platts seeks feedback on the timing of any potential methodology change that may emanate from the consultation phase.

Platts ETBE specifications can be found in page 10 of the methodology document here: https://rb.gy/fguqds

Please send all feedback, comments or questions to petchems@spglobal.com and pricegroup@spglobal.com by July 17, 2020.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.